Last week saw the minimum price of alcohol in Scotland rise from 50p per unit to 65p per unit. Thanks to inflation, 65p today is the same as 50p in 2017, but it won’t feel like that to shoppers who have seen their incomes fall in real terms.
Those who lobbied for the price hike employed two arguments. The first was that minimum pricing has been a tremendously effective public health policy that saved hundreds of lives and the Scottish government should “build on the success”. The second was that deaths from alcohol are at a fifteen year high in Scotland and that “a radical step change” is required to tackle this “public health emergency”. Fans of George Orwell will recognise this as doublethink, but it worked. Booze prices have now shot up.
The question that is often asked about minimum pricing is “where does the money go?” It is not a tax so it doesn’t go to the government. Does it go to the retailer? Does it go to the manufacturer? Who is making money out of it?
The answer is that it depends, but there is no reason to assume that anyone is reaping big profits.
Read the rest at The Critic.
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